Individuals applying for a loan against property should consider a few things for hassle-free and easy repayment. It will help in maintaining their creditworthiness and keeping a decent repayment record.
Things to consider before availing a loan against property
Here’s what an LAP applicant should remember:
- Interest rate
Interest rates on LAP vary from one lender to the other. One should compare the interest rates offered by different lenders before opting for an LAP. It will help them choose the best loan option as per their repayment capability and budget.
- Offers and benefits
Some lenders offer several benefits to attract customers. For instance, many lending institutions offer pre-approved offers on various loan products like home loans, LAP, etc. It saves the time taken for the loan approval and makes the entire process to apply for loan against property hassle-free.
- Property loan eligibility criteria
Borrowers must be Indian citizens with a stable source of income to avail an LAP. Moreover, individuals can use loan against property eligibility calculator to determine the loan amount they can receive from a lender. The eligibility might vary across lenders.
- Property value
Property value is a crucial factor in determining the loan amount an applicant is eligible for. The loan amount will depend on factors like age, locality, size, amenities offered, etc.
- Estimate of the borrowed amount
Before applying for a loan against property, individuals need to estimate their expenses and figure out the actual requirement. They should not borrow an unnecessary colossal amount and draw a burden.
So, every individual should consider the mentioned factors before applying for a loan against property. It will help them plan their finances accordingly and repay smoothly.
